Max Ventures completes first tranche of divestment of balance 51% stake in packaging business for Rs628cr; Stock zooms 4%

2 Feb 2022 , 12:30 PM

Max Ventures & Industries Limited (MaxVIL) has completed the first tranche of the divestment of balance 51% stake in its packaging business for ~Rs628cr. Max Ventures sold the stakes of Max Speciality Films Limited (‘MSFL’) to partner Toppan Inc.

Accordingly, MSFL ceases to be a subsidiary of the company effective 1st February 2022.

Max Ventures is receiving the first tranche payment of ~Rs485cr, an additional Rs10cr  expected within 30 days and the second tranche of payment of about Rs133cr are expected to be received before June 2023.

Sahil Vachani, MD & CEO of MaxVIL said, “With the closure of this transaction, the company has embarked on a new journey to emerge as the leading Real Estate developer in the NCR region. The fund allows the company the headroom to scale its growth aspirations across both the Residential and Commercial spaces. The real estate sector has witnessed strong recovery and we have a strong residential and commercial real estate development pipeline under different stages of evaluation including due diligence.”

Vachani added, “The proceeds from the packaging business combined with internal accruals and potential financial partnerships with institutional investors will be judiciously deployed in these development opportunities. This will help us deliver on our stated aspiration of adding 1 Mn square feet of premium residential as well as commercial real estate space every year.”

With the exit from the packaging business, MaxVIL has now emerged as a pure-play real estate business entity with a focus on premium residential and commercial real estate in NCR. The proceeds from the sale of the packaging business will be utilized towards the development of the real estate business and achieve the growth ambitions of MaxVIL to become one of the top multi-asset real estate developers in the NCR region.

The restructuring process of MaxVIL and Max Estates to change the name of a listed company to Max Estates Limited has been initiated to reflect the true nature of the business and simplify the present holding company structure and the same will be presented to the Board of Directors of the Company for consideration and approval in due course.

At around 12.27 pm, Max Ventures stock was trading at Rs119.45 per piece up by 3.8% on BSE. The stock was near the day’s high of Rs122 per piece.